Schlumberger NV (SLB): Today's Featured Basic Materials Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Schlumberger ( SLB) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day down 3.5%. By the end of trading, Schlumberger fell $1.26 (-1.7%) to $72.14 on average volume. Throughout the day, 8,846,625 shares of Schlumberger exchanged hands as compared to its average daily volume of 6,951,500 shares. The stock ranged in price between $71.80-$72.82 after having opened the day at $72.61 as compared to the previous trading day's close of $73.40. Other companies within the Basic Materials sector that declined today were: Rio Alto Mining ( RIOM), down 19.7%, Andatee China Marine Fuel Services Corporat ( AMCF), down 14.3%, Banro Corporation ( BAA), down 14.2% and Pretium Resources ( PVG), down 13.9%.
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Schlumberger Limited, together with its subsidiaries, engages in the supply of technology, integrated project management, and information solutions to oil and gas exploration and production industries worldwide. Schlumberger has a market cap of $98.6 billion and is part of the energy industry. The company has a P/E ratio of 18.3, above the S&P 500 P/E ratio of 17.7. Shares are up 5.9% year to date as of the close of trading on Wednesday. Currently there are 23 analysts that rate Schlumberger a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Schlumberger as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins, unimpressive growth in net income and disappointing return on equity.

On the positive front, Prospect Global Resources ( PGRX), down 17.9%, Ossen Innovation ( OSN), down 16.7%, GeoPetro Resources Company ( GPR), down 12.1% and Kimber Resources ( KBX), down 10.2%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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